Boston, MA 03/12/2014 (wallstreetpr) – Skullcandy Inc (NASDAQ:SKUL) is a manufacturer and marketer of gaming and audio accessories, specifically headphones. The company functions in the low price market category and its main focus are the youth. Business has not been very rewarding for this company but things seem to start moving in the desired direction. But even as this is happening, it is important for investors to take note of some key aspects of the ongoing turnaround efforts.
We notice and acknowledge that Skullcandy Inc (NASDAQ:SKUL) is swinging back to action in an impressive way. The company is hoping that it can rule the youth audio marketplace with its new and low cost products. This is going to work as long as major surprises do not show up sooner than anticipated. However, for investors salivating for this stock, it is wise going in with the understanding that immediate gains may be possible. More about this in just a moment, but first, let’s take a recap of the shares performance in the last session.
Shares of Skullcandy Inc (NASDAQ:SKUL) changed hands in range of $9.89 – $10.45 in the last trading day. The stock eventually booked a final price position at $10.04 with 0.4 percent gain in the regular session. The Tuesday gain was a continuation of a series of gains that have been noted in the stock of late.
Skullcandy Inc (NASDAQ:SKUL) looks more excited than before now with a new leadership in place. And the company is sending all clear indications that this year and beyond will not be business as usual. Although data show that headphone sales grew by a smaller percentage in 2013 compared with 2012, the category of ear-buds has been showing strong growth. With that in mind, Skullcandy Inc (NASDAQ:SKUL) is introducing low cost ear-buds to in efforts to kill more than one bird with a single stone. The company hopes that its low cost devices will be attractive to the youth who are the main consumers of music and games audio accessories. Also, the company hopes that its ear-buds that connect wirelessly will receive quick adoption in the wearable market such as fitness bands.
How to play SKUL
While Skullcandy Inc (NASDAQ:SKUL) is no doubt having growth opportunities ahead, it may not be of big help for investors in a hurry for profits. In other words, this stock is perfect for long-term holding so that you can partake fully in the envisioned growth.